Market strategy and development

The next stage of new product development is the market strategy and development phase. Armstrong and Kotler (2012) explains how the focus of this stage is the marketers recognising the developmental products target market, what can be gained from the identified market, the process of developing a marketing mix and the management of the marketing program.  Armstrong and Kotler (2012) believe that in order to achieve market growth an effective market development process must be implemented, with a focus on identifying and developing new market segments for the organisations products, which coincides with previous stages of NPD that enable an organisation to produce effective ideas for a original/lucrative product. Consequently Armstrong and Kotler (2012) believe that an organisation should complete the stage using available tools and models in order to exploit the advantages in ever changing market.

As previously stated the collision sense technology product has a potential large target market size. In relation to Armstrong and Kotler (2012) the products originality is a positive as it can potentially create a new market in both sport entertainment and refereeing. However the success and size of the market will be largely affected by how well the product fits around the structure and behaviour of the consumers. These factors are largely dependent on the planned price for the product and how it will be promoted, with promotion being largely important within gaining inclusion in highly viewed television channels i.e. sky. However planning a set price for the product is hard at this particular point as the product is effectively in its own sports market and therefore comparisons can’t directly take place. However in a review from Phillips (2012) it shows how sky originally priced their product at a premium rate or £300 per year which is relatively expensive for a new product however phillips states how this created a premium feel to the brand and the exclusive content created a demand from consumers, therefore a similar approach can be taken with collision sense as it is exclusive and has no direct competitors. In order to gain a feel of the products positioning, a product positioning map can be used with an indication of the augmented and expected product (see appendix)

To conclude its vital that the product is promoted well to high status television company's as a primary consumer, as this is the most lucrative market. 

Appendix

(Triple A learning, 2012)

Reference list

Armstrong, G., and Kotler, P. (2012). Marketing. Edinburgh Gate: Pearsons Education Limited. 64-73.

Phillips (2012) C Innovation and new product development: Sky+, a mini case study

Triple A learning. (2012). Marketing. Available: http://www.gregglee.biz/ftp/student/Marketing/page_63.htm Last accessed: 4/12/13